AIM Stocks now offer compelling value, despite them having underperformed the FTSE Smaller Companies Index over the past three years, according to Gartmore's head of UK smaller companies, Gervais Williams.
Williams said that of the companies researched some were trading at exceptionally low levels. "It's not that they are just 30pc or 50pc undervalued. In our opinion there are some cases where they are trading at entirely the wrong price." He is distinctly cautious about the prospects for the UK economy and the stock market as a whole in 2008. "The credit crunch is not easily solved and banks are likely to turn to the equity market for funding. I think that consumers will find it increasingly difficult to access borrowing so I expect weakness in housing, retailing and the leisure sector." ...
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